Legal Action For Delay In Invoice Payment

This is with regards to one of my long-standing invoices which is more than 150 days. The invoice is a GST Invoice and is pending for more than 150 days. There have been payment reminders sent on mail. I even once received the mail stating the paymen... Read More

This is with regards to one of my long-standing invoices which is more than 150 days. The invoice is a GST Invoice and is pending for more than 150 days. There have been payment reminders sent on mail. I even once received the mail stating the payment would be made in December 2019. I am registered under MSME and the Invoice I have raised the invoice for a PVT. LTD. company. At this moment they are giving COVID 19 as one of the reasons for payment delay, but the payment was supposed to be done before the outbreak. Please let me know if any legal step can be taken against them for the payment of the Invoice.
Read Less

Answer (1)

Tanya Mahajan

Tanya Mahajan

  • Sector-1, Noida

The Micro, Small and Medium Enterprises Development Act, 2006, made provisions to mitigate the problem of delayed payment, whereby any buyer who fails to make payment to MSMEs, as per agreed terms or a maximum of 45 days, would be liable to pay monthly compounded interest at three times the bank rate notified by RBI.

Answered on 31 Mar 2020


Was this answer helpful?

Didn't find the answer you are looking for?

Talk to experienced lawyer online and get your answered in minutes.

Advocate Piyush SinghAdvocate Anuj AroraAdvocate Devinder SinghAdvocate Dilpreet S Gandhi+50